announcement of a $2.4 billion, 10-year construction partnership between
Watercare and Fulton Hogan and Fletcher Construction is a positive development
for the wider infrastructure industry that will lead to better outcomes for all
parties,” says Infrastructure New Zealand CEO Paul Blair.
“By committing to a
long-term programme of work rather than one-off projects, Watercare is giving
the certainty that construction companies like Fulton Hogan and Fletcher
Construction need to be able to invest in skills, drive efficiencies, and innovate.
“The collaboration is
good for Watercare, which needs partnership to drive its ambitious
sustainability, cost, and well-being goals, as well as for its key suppliers.
“This partnership is
consistent with the Construction Sector Accord, established earlier this year,
that aims to bring the public sector and construction industry together to
support a long-term, sustainable, and innovative construction industry in New
Zealand is delighted to see that this type of collaborative partnership uses
the best-practice guidelines established in our 2018 report, Creating Value Through Procurement: A
Report into Public Sector Procurement of Major Projects.
national infrastructure pipeline of $129 billion over the next 10 years, we call
on all public sector entities to closely examine this model. Watercare is
aiming for 20% cost savings, but if our country saved even 10% we could deliver
at least 20,000 new social homes or pay for 15 transport projects the size of
“The agreement has
occurred while Watercare remains tied to the Auckland Council’s balance sheet,
limiting the CCO's capacity to raise debt to finance major infrastructure
“Imagine how much more
Watercare could do if it had financial independence. The scale and depth of
infrastructure investment would be much greater, leading to both better results
for the construction sector but also to better, safer, and more sustainable
water infrastructure for Aucklanders.
“We look forward to the
Government’s forthcoming water sector reforms to enable more long-term,
large-scale and strategic investment in New Zealand’s essential water
infrastructure,” says Blair.
For further information and comment contact Paul
Blair on 021 902 436